What are Adjusted Funds From Operations (AFFO)? Adjusted Funds From Operations (AFFO) is a measure of the financial performance of a REIT, and it is used as an alternative to Funds From Operations (FFO). AFFO is a superior measure compared to FFO because the former considers the maintenance costs of the real estate property over…
What is the NCREIF? NCREIF is an acronym of the National Council of Real Estate Investment Fiduciaries, and it operates as a non-profit entity. The main aim of the NCREIF is to inform concerned parties on the actual performance of the real estate industry, so they can use the information to make informed decisions. The…
What are Private REITs vs Publicly Traded REITs? The article below covers private REITs vs publicly traded REITs. Real estate investment trusts (REITs) can be classified into either private or public, traded or non-traded. REITs specifically invest in the real estate sector, and they lease and collect rental income on the invested properties that is…
What is the Redemption Rights Clause? The redemption rights clause gives the owner of a property the right to reclaim his/her property during a foreclosure auction. The clause is often included in a mortgage agreement. Redemption rights allow the borrower to prevent foreclosure on the property by paying all liens or back taxes on the…
What are a Bank’s Business Segments? A bank’s major business segments are retail banking, wholesale banking, and wealth management. While banks might take on different names for their various business operations, they still perform the same business functions as these three categories. Some larger banks also run business segments outside of the traditional three, such…
What are Non-Recourse vs. Recourse Loans? Non-recourse vs. recourse loans are two general categories often used when shopping for a real estate loan. There are, of course, many factors to consider when getting a loan, either for a home or a commercial property. Factors such as the comfort level with the lender, the amount that…
What is P/FFO vs P/AFFO? P/FFO vs P/AFFO are considered more sophisticated metrics to measure REIT performance. Though earnings per share (EPS) is often used to measure the performance of a REIT, P/FFO (Price/Funds from Operations) and P/AFFO (Price/Adjusted Funds from Operations) are preferred since they embrace procedures that better estimate the performance of the…
How to Expand All Grouped Cells in Microsoft Excel? Grouping data is an essential feature In Microsoft Excel that makes data management highly efficient and saves a lot of time. It enables a user to perform a number of functions and carry out various types of analysis, which can help them refine their data more….
What is ROIC vs ROCE? Understanding financial ratios such as ROCE vs ROIC is important to investors in determining the viability of an investment. ROIC is the net operating income divided by invested capital. ROCE, on the other hand, is the net operating income divided by the capital employed. The two ratios come with identical numerators…
What is a Liquidating Dividend? A liquidating dividend is a dividend issued by a business as part of its liquidation process. Liquidation is the process by which a company ends its business activities and exits the market. Liquidation can be voluntary or involuntary (forced). A liquidating dividend is also known as a liquidating distribution or…
